Gold tumbles Rs 175 on global cues, silver plunges too
Driven down by weak cues from the global market and slack demand from jewellers, gold extended its slide for the second straight day as prices plunged Rs 175 to Rs 25,775 per 10 grams at the bullion market on Tuesday.
Silver slipped below the Rs 35,000-mark by falling Rs 575 to Rs 34,425 per kg on reduced offtake by industrial units and coin makers.
Bullion traders said a weak trend in the global market, which stemmed from expectations of a US rate hike this month, kept up pressure.
Furthermore, a muted demand from jewellers and retailers pulled down gold prices, they said.
Globally, gold fell 0.2 per cent to USD 1,069.90 an ounce in Singapore while it closed 1.39 per cent lower at USD 1,071.20 an ounce in New York on Monday.
Besides, a sluggish demand from jewellers and retailers at the domestic spot market dampened sentiment, they said.
In the national capital, gold of 99.9 per cent and 99.5 per cent purity tumbled Rs 175 each to Rs 25,775 and Rs 25,625 per 10 grams, respectively. It had shed Rs 50 on Monday.
Sovereign, however, held steady at Rs 22,200 per piece of eight grams.
Tracking gold, silver ready broke below the Rs 35,000- level by falling Rs 575 to Rs 34,425 per kg, with weekly-based delivery slumping Rs 585 to Rs 34,600 per kg.
Silver coins also plummeted by Rs 1,000 to Rs 47,000 for buying and Rs 48,000 for sale of 100 pieces.